Let the Arbitrageurs Do Their Darnedest

Updated May 5, 2004 12:01 a.m. ET

Your opposition to prescription drug re-importation, as evidenced by your April 26 editorial "Drug Wars" and Holman W. Jenkins Jr.'s April 28 Business World column "Why Not Import Drugs From Fantasyland?" relies upon the same sort of static analysis that you rightly denounce when liberals use it to criticize tax cuts. Static analysis tells us that lowered tax rates result in lowered tax revenues. In reality, however, lowered tax rates stimulate economic activity and, ultimately, increase tax revenues.